Sprint Nextel Corp.

The number of Americans filing for unemployment benefits unexpectedly increased to a two-month high last week. Swings in jobless applications are typical in July as auto plants close for annual retooling.

U.S. stocks fell, erasing earlier gains, as the Standard & Poor’s 500 Index failed to hold above its average level from the past 50 days and investors awaited a monthly jobs report and the start of corporate earnings.

Sprint Nextel Corp., whose investors backed a takeover by SoftBank Corp. yesterday after an eight-month fight, is now preparing to use the firepower of its soon- to-be parent company to target Verizon Wireless and AT&T Inc.

U.S. stocks fell, giving the Standard & Poor’s 500 Index its biggest two-day loss since 2011, as global equities tumbled after the Federal Reserve said it may phase out stimulus and China’s cash crunch worsened.

Commodities fell to a nine-month low, led by the worst plunge in gold since 1980, and global stocks slid the most since June as China’s economic growth unexpectedly slowed and investors speculated hedges against inflation were unneeded.

Rengan Rajaratnam, the younger brother of imprisoned hedge-fund founder Raj Rajaratnam, was taken into custody by FBI agents yesterday when he arrived at John F. Kennedy International Airport on a flight from Brazil.